10 Things to Know Before Buying an ADU or DADU in Washington
Accessory Dwelling Units (ADUs) and Detached Accessory Dwelling Units (DADUs) have become increasingly popular in Seattle, thanks to relaxed zoning laws and the city's efforts to combat its housing crisis. If you're considering buying a property with an ADU or DADU, or planning to build one, here are the ten things you need to know before diving in.
1. What is an ADU or DADU?
ADUs are secondary housing units attached to or within a primary home, while DADUs are freestanding units typically located in the backyard. These units provide flexible living arrangements, such as renting out space or offering housing to family members. You can also convert existing spaces like garages or basements into ADUs, but conversions must meet specific code requirements.
2. Seattle’s ADU Reform in 2019 and Upcoming Changes in 2025
In 2019, Seattle implemented significant reforms to its Accessory Dwelling Unit (ADU) and Detached Accessory Dwelling Unit (DADU) regulations aimed at addressing the housing crisis and increasing the availability of affordable housing options. The key changes included allowing homeowners to construct up to two ADUs on a single property, which expanded opportunities for creating additional rental units. This reform also lifted parking requirements, making it easier for homeowners to add these units without the burden of providing off-street parking, particularly beneficial in densely populated areas.
Looking ahead to 2025, further changes are expected with the implementation of HB 1337. This new legislation aims to enhance the existing framework by promoting even more flexibility for homeowners interested in ADUs. The law will permit the construction of multiple ADUs and DADUs without the requirement for owner occupancy, which will continue to incentivize homeowners to invest in additional housing options. Furthermore, HB 1337 is anticipated to streamline the permitting process for ADUs, making it easier and faster for homeowners to get approval for their projects.
These reforms in 2019 and the anticipated changes in 2025 reflect Seattle’s commitment to addressing housing shortages and supporting sustainable, community-oriented development. Homeowners considering adding ADUs or DADUs will find an increasingly supportive regulatory environment, paving the way for innovative housing solutions in the city.
3. Permits Required for ADUs and DADUs
Before purchasing or building an ADU or DADU, be prepared for the permitting process. Each type of ADU (attached, detached, or conversion) requires its own permits, including building, electrical, plumbing, and sometimes environmental reviews. The City of Seattle has streamlined the process, but it’s important to know that proper permitting ensures your unit complies with zoning, health, and safety regulations.
4. Zoning, Parking, and Size Requirements
Zoning laws dictate whether ADUs can be added to a property, with most single-family zones in Seattle now allowing them. While there are no minimum lot size requirements, DADUs are restricted to a maximum size of 1,000 square feet. Parking isn’t required, but this could be a consideration if you or your tenants have vehicles. Additionally, Seattle limits the number of occupants per unit to prevent overcrowding.
5. Condo Rules, HOA Regulations, Ownership, and Condoization
If you're buying a property that's part of a condominium, it’s crucial to review the homeowner association (HOA) rules carefully. Some HOAs may restrict adding or renting out ADUs, which could impact your plans for the property. In addition to understanding the HOA's rules, you should also be aware of the responsibilities tied to shared spaces, annual meetings, and maintenance fees.
Another important consideration is condoization—the process of converting a multi-unit property into individual condo units that can be sold separately. Condoization can affect homeowners by dividing ownership of land and common areas, potentially leading to higher HOA fees, changes in maintenance responsibilities, and complications when selling. If the property has been condoized or could be in the future, it's important to understand how this affects your rights as a homeowner, particularly regarding resale value and shared obligations. Clarifying these details before purchasing can save you from future conflicts and financial surprises.
6. Financing and Submitting an Offer
Financing an ADU or DADU property can differ from traditional home loans. Lenders may take into account the rental income potential of an ADU, which can help boost your financing power. Additionally, during the offer process, make sure to include detailed information about the ADU, its permits, and its compliance with city codes. It’s also a good idea to budget for any upgrades or repairs that might be needed to bring an existing ADU up to code.
7. Utilities, Property Taxes, Garbage, and HOA Fees
ADUs and DADUs often share utilities (water, electricity, gas) with the main house, but in some cases, separate meters can be installed for more accurate billing. Property taxes may increase if the addition of an ADU raises your home’s assessed value, so it’s important to budget for potential tax hikes. Additionally, check with the City of Seattle on how garbage and recycling collection will be handled, as you may need to adjust or expand your waste services.
If your ADU or DADU is part of a condoized property or within a Homeowners Association (HOA), monthly HOA fees will typically be lower for these types of builds compared to larger condo developments. These fees often cover shared services such as condo insurance, maintenance, landscaping, and sometimes a condo renewal fund for long-term repairs. However, any changes to these services or fee increases usually require approval from a majority of homeowners, ensuring that decisions are made with the input of all stakeholders. Understanding these costs ahead of time can help you plan your finances and avoid surprises.
8. Dealing with Neighborly Disputes
Adding an ADU or DADU to your property can sometimes raise concerns with neighbors about parking, privacy, and noise. It’s important to communicate with your neighbors about your plans and understand the legal boundaries related to property lines and city regulations. Addressing concerns early can help avoid disputes down the road. Keep in mind that owners of a unit will be required to vote for and a President, Treasurer and Secretary. These roles will have annual responsibilities and will need to be renewed once a current owner sells.
9. What to Look for When Picking an ADU Property
When selecting a property with an ADU or planning to build one, consider more than just the current layout. Assess the lot size, access points, and the overall neighborhood vibe to ensure it suits tenants or family members while still preserving your own privacy.
Additionally, think about future use—if you or a family member plan to age in place, ensure the ADU is accessible and adaptable for mobility needs. Resale value is another key factor; a well-designed ADU can increase property value, but it’s important to verify that it's compliant with Seattle's zoning laws and will appeal to future buyers.
Consider the location and proximity to amenities like public transit, schools, and grocery stores, which can enhance the desirability of the property for potential renters or buyers. A well-chosen property should offer both short-term flexibility and long-term investment potential.
10. HOA Board Responsibilities, Resale Certificates, and POS Documents
If the property you're buying is part of an HOA, it’s essential to understand the HOA board’s responsibilities and how they impact your ownership. The board typically manages the property’s common areas, enforces community rules, and handles finances such as budgeting for repairs and improvements. You may also have voting rights to approve decisions on issues like landscaping, building maintenance, or amenity upgrades. Being aware of the board’s structure and your role as an owner ensures you’re fully prepared for any shared obligations.
Additionally, you’ll need to review the resale certificate when buying. This document provides key information on the financial health of the HOA, including the balance of reserve funds, which are used for long-term repairs and emergency expenses. It will also disclose if there are any upcoming assessments, such as major building repairs or upgrades, that could lead to fee increases. Understanding these financials helps you avoid unexpected costs after purchasing.
The POS (Public Offering Statement), which is required for new condos, details the rights and responsibilities of both the HOA and individual owners. This includes important information about ownership structure, common area maintenance, and insurance coverage. Reviewing this document carefully will give you a clear picture of what you’re responsible for as an owner and what the HOA covers.
Conclusion
Buying a property with an ADU or DADU can be a smart investment, but it’s essential to understand the intricacies involved. From zoning and permits to financing and neighborhood considerations, being well-informed will help you make the best decision and maximize the benefits of owning an ADU in Seattle.